HB5013 Summary: Downstate Police and Firefighter Pension Investment Boards

• Creates two new investment boards (Downstate Police Pension Investment Board and Downstate Firefighter Pension Investment Board) to manage investment assets for eligible pension funds established under Articles 3 and 4 of the Illinois Pension Code.

• Establishes an "eligible pension fund" definition based on assets exceeding 3 months of current liabilities; upon receiving a certified investment asset list, eligible funds must transfer all investment assets to the respective Investment Board and cease individual investment activities.

• Reduces mandatory trustee training from 32 hours to 8 hours for initial certification and from 16 hours to 4 hours annually for continuing education.

• Doubles the annual compliance fee for Article 3 and 4 pension funds from 0.02% (2 basis points) to 0.04% (4 basis points) of total assets, with maximum fee increasing from $8,000 to $16,000; adds penalty provisions of up to $2,000 per day for noncompliance with asset transfer requirements.

• Changes all downstate police and firefighter pension fund fiscal years to May 1 through April 30 by April 30, 2019; includes implementation without state reimbursement per the State Mandates Act.